Solve these questions with a full explanation,

Qu estio n 3 The Placebo Drug Company holds a patent on one of its discoveries. a] Assuming that the production of the drug involves rising marginal cost, draw a diagram to illustrate Placebo's profitmaximizing price and quantity. Also show Pla oebo's prots. b) Now suppose that the government imposes a tax on each bottle of the drug produced. On a new diagram, illustrate Placebo's new price and quantity. How does each compare to your answer in part {a}? c] Although it might not be easy to see in your diagrams, the tax reduces Placebo's prot. Exp-la in why this must be true. d} Instead of the tax per bottle, suppose that the government imposes a tax on Placebo of 110,000 prots? Explain. (Hint: Additional unit produced won't affect the tax amount)